All Forum Posts by: Elias Halvorson

That is in the past. But like I *meant* to write, I havent done one in a couple of years. However, you can put that commercial rent as your income. That should be enough to at least get you 20-30K. Not sure what you are planning on using the 50-75K for but if it is just living expenses, etc while you start your new career than just go with the 20-30K personal loan. Much better deal for you in the long run. 

And you still own the commercial property at some sort of a net positive per month so you can list that. In fact, you can list the entire amount as income on your application. SUre you have a mortgage on it, but let them do the homework of subtracting your mortgage amount. 

Just put income from your last job and put an estimate of what you will make in youre new job. I done a personal loan in a couple years but I didnt even have to show paystubs on some of the ones I've done. 

 I would highly recommend a personal loan from SOFI, or maybe a local credit union. I have got 4x personal loans ranging from 40-85K before, but it is all dependent on income. With your new job it may be a little harder to get 50-75K but you can try. Although the interest rate will be higher (maybe 8-9%), there will only be 300 or so in fees vice the 10K you're likely looking on a cashout refinance. Further, 6.25% is very good for an investment property, current rates are higher. 

So in short, my recommendation is to get a personal loan for as much as you can and stretch the repayments out to 72-84 months. 

 Hey Sam, 

Those offers/rates are terrible. I just closed a DSCR cashout refinance with better terms than what you are being offered. I would definitely shop more, neither of those deals make sense to me. I am happy to take a look and tell you what you should be getting (there are some pieces of the puzzle missing such as credit score, etc.)

V/r,

Elias

It depends on your personal preference. I liked buydowns for folks who needed/wanted the lower monthly payments. In an environment where rates are decreasing you could temporarily get a larger reduction in monthly payments and (hopefully) be able to refinance at a lower, permanent rate sometime in the future. However, if you don’t have an issue making the monthly payments without the buydown then probably just Stick to getting your closing costs covered. 

If you’re concerned speak with a real estate attorney. 

I would recommend personal loan. Way less fees, you could stretch it over 6-8 years, etc. 

Sean, everything Pat said above. 1st you need to have a clear plan on what you’re going to do with the place. Secondly, 1% is a good target but just as Pat wrote above it does depend on the loan amount. On larger loan amounts saving .5-.75% might be a solid deal. I would also generally agree with Pat’s two years or less comment. I would qualify it with in today’s seemingly rate decreasing environment, I might look to trying to recoup costs in 12-18 months (or less) 

All lenders have fees, those that don't just roll those fees into the rate ie offer higher interest rates. I would contact a mortgage broker in your local area, a credit union, and maybe a mortgage bank. Get quotes from all three and go with the one who offers the best combo of rates and service. 

Cheers!